Shanghai government has planned a pilot program for the further development of service and trade innovation within Shanghai city. Shanghai Dongjin summed the key tasks up as follows:
First is to fully complete the management system, promote the reform of “Decentralization-Control-Service" and raise the efficiency for government services. According to the policies and measures formulated by the relevant administrations of the state, the examination and approval process of foreign travel agencies is going to be simplified, and the enterprise commitment system shall be implemented. The examination and approval time limit would be shortened from 30 working days to 15 working days. Complete the functions of Integrated Online Platform to further upgrade the special convenient services for foreign-funded enterprises and foreigners.
Second is to fully explore the expanding of opening-up within service industry as a pilot spot. Support the development of cross-border commercial medical insurance products in cooperation with overseas institutions. Support foreign patent agencies to set up permanent representative branches in the city. Hong Kong and Macao lawyers are allowed to be employed within the law firms which are formed in Shanghai by both mainland China and Hong Kong or Macao investors in their own names. Expand the scope of qualified domestic investors to the investment management institutions which are established in Shanghai by domestic or overseas institutions including securities enterprises and funds enterprises. Revise and improve the relevant measures for the pilot of Shanghai foreign-funded equity investment enterprises and qualified domestic limited partners, and support overseas investors to invest in the equity of domestic innovative science and technology enterprises through the qualified foreign limited partner (QFLP) form.
Third is to improve the convenience of cash flow and cross-border data flow. Set up local and foreign currency integrated account system within Shanghai Lin’gang New Area to support eligible multinational enterprise groups to establish local and foreign currency in one fund pool. This trial allows qualified foreign-funded financial institutions in China to submit relevant data from domestic holding-interest institutions to overseas ones due to their collectivization managements, especially data related to internal management and risk control.
Fourth is for the up-gradation in key fields and industries as the extension of scope for cross-border financial services. Support qualified foreign-funded banks to carry out treasury bond and future trading to participate in commodity futures, standard warehouse receipts, standard warehouse receipt pledge and over-the-counter derivatives business more widely. And support qualified domestic and foreign-funded institutions to apply for the establishment of bank card clearing institutions and participate in the domestic RMB bank card clearing market.
Fifth is for the fiscal and tax policies. It could be further explored for domestic and foreign-funded hospitals within the special customs supervision area to keep those imported medical equipment and consumables materials which are for the need of R & D business and not for sale or use.
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Mr. Mike Chang (Partner)